Where are the big changes?

Imports of cars from the EU will have a tariff of 10% applied, which would add £1,500 to a typical family car.

Volkswagen has already said the cost would be passed on to the buyer.

Car parts such as engines would have no new tax applied to avoid disruption to the movement of components.

A spokesman for Ford UK warned that the tariffs would “deal a devastating blow to much of the complex and integrated automotive industry, and would damage the competitiveness of Ford’s engine manufacturing in the UK”.

While some tariffs will protect farmers producing meat, other sectors of farming will have low or no tarrifs.

The National Farmers’ Union President, Minette Batters, said that eggs, cereals, fruit and vegetables would not receive any protection under the plans.

The plans would see the current tariff rate on oranges cut from 16% to 0%, the rate for onions down from 9.6% to 0% and the tariff on imported televisions down from 14% to 0%.

Goods to have their tariff rates cut to zero

What has been the reaction?

Unite assistant general secretary for manufacturing Steve Turner described the potential no-deal as “economic vandalism which is threatening jobs and livelihoods” and called for tariffs to be dropped on EU imports.

Carolyn Fairbairn, director general of the CBI described the changes as a “sledgehammer to our economy” as companies spend more on stockpiling.

She said: “These are being imposed on this country with no consultation with business with no time to prepare.”

Trade minister Liam Fox will speak to business leaders at 15:00 GMT to discuss the tariffs, Reuters reported.

Image copyrightGetty Images

Why is the government planning to cut tariffs?

Trade Policy Minister George Hollingbery said: “Our priority is securing a deal with the EU as this will avoid disruption to our global trading relationships. However, we must prepare for all eventualities.”

He said: “This balanced approach will help to support British jobs and avoid potential price spikes that would hit the poorest households the hardest.”

“The new tariff seems a reasonable compromise between protecting vulnerable (and politically important) sectors and keeping prices down for consumers,” said Prof Alan Winters, director of the UK Trade Policy Observatory at the University of Sussex.

“For producers, there will be relief in some sectors and nasty surprises for others,” he said.

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